Industrial Margarine Global Market Report 2024

The industrial margarine market size has grown strongly in recent years. It will grow from $2.66 billion in 2023 to $2.8 billion in 2024 at a compound annual growth rate (CAGR) of 5.4%. The growth witnessed in the historical period within the industrial margarine industry can be attributed to several key factors. These include the economic recovery post-World War II, periods of food rationing and shortages that necessitated alternative food sources, evolving dietary preferences among consumers, the globalization of food markets, and the emphasis on cost competitiveness in food processing.

The industrial margarine market size is expected to see steady growth in the next few years. It will grow to $3.36 billion in 2028 at a compound annual growth rate (CAGR) of 4.7%. The anticipated growth in the forecast period within the industrial margarine sector is expected due to several influential factors. These encompass a focus on sustainable sourcing and production methods, the prevalence of health and wellness trends, the rise of plant-based and vegan dietary preferences, the demand for clean label and natural ingredients, and the increasing adoption of e-commerce and direct-to-consumer models. Major trends projected for this period include expansions in retail distribution and innovations in packaging solutions. Furthermore, advancements in technology applied to production processes, the integration of smart manufacturing principles and Industry 4.0 practices, collaborative efforts and partnerships across the value chain, and innovative packaging solutions geared toward sustainability are expected to significantly impact the industrial margarine industry's growth in the forecasted period.

The anticipated high growth in the food industry is poised to drive the expansion of the industrial margarine market. The food industry, encompassing the manufacturing and distribution of food products, relies on industrial margarine as an emulsifier that imparts organoleptic qualities such as a rich flavor and smooth texture to various food items. As of 2023, the Food and Drink Federation reported substantial activity in Scotland, registering 1,185 companies engaged in the manufacturing of food and beverages. Scottish exports of food and beverages witnessed a notable 31% increase in 2022, reaching $10.18 billion (£8.1 billion). Moreover, the turnover from food and beverages accounted for $12.5 billion (£10.3 billion), representing 33% of total Scottish manufacturing. This data underscores the pivotal role of the growing food industry in propelling the industrial margarine market.

The rise in the vegan population is expected to contribute significantly to the growth of the industrial margarine market. The term 'vegan population' refers to strict vegetarians who abstain from consuming any animal products, including meat, eggs, and dairy. Industrial margarine serves as a plant-based alternative to butter, aligning with the preferences of the vegan population driven by ethical, health, and environmental considerations. In January 2023, a report by the U.S. Department of Agriculture's Foreign Agricultural Service highlighted Germany as having the highest rate of vegetarianism. In 2022, over 1.5 million individuals in Germany identified as vegans, marking a substantial increase from 10 years prior when 0.1 million individuals identified as vegans. This surge in the vegan population is a key driver behind the growth of the industrial margarine market.

Technological advancements stand out as a prominent trend gaining momentum in the industrial margarine market. Major companies within this market are dedicated to developing new technologies to enhance the functionality and applications of industrial margarine. For example, in March 2021, Grüninger AG, a Switzerland-based margarine and fat bakery producer, introduced an innovative custom-flavoring process. This process is designed to produce palm-free, vegan, and vegetarian margarine with effective flavor masking of any off-note aromas. Leveraging cooling drum technology and incorporating natural rosemary extract-derived antioxidants, this advancement allows for custom flavoring tailored to specific applications. The neutralized fats not only maintain the flavor of margarine but also address challenges often encountered when substituting solid palm fat with other oils. Additionally, they extend the product's shelf life, enhance heat stability during baking, and provide an optimum mouthfeel.

Major companies operating in the industrial margarine industry are adopting a strategic partnerships approach to augment product innovation and expand their global market presence. Strategic partnerships involve companies leveraging each other's strengths and resources for mutual benefits and success. A case in point is the partnership established in April 2023 between Ahlstrom, a Finland-based provider of fiber solutions, and ISTITUTO STAMPA s.r.l, an Italy-based provider of food packaging solutions. The aim of this partnership is to develop an innovative and sustainable packaging solution for the butter and margarine industry. The new product, based on Sulpack and utilizing Ahlstrom's unique genuine vegetable parchment technology, not only offers essential protection for dairy products but also presents an eco-friendly alternative to traditional aluminum plastic structures. This strategic partnership exemplifies the industry's commitment to fostering innovation and sustainability in the industrial margarine market.

In March 2023, KTC, a United Kingdom-based producer of edible oils, completed the acquisition of Cardowan Creameries for an undisclosed sum. This strategic acquisition marks KTC's portfolio expansion by incorporating Cardowan's specialized expertise in producing bread fat emulsion and cake margarine. Cardowan Creameries, also based in the UK, is known for its manufacturing of margarine and brings its unique techniques and methodologies to enhance KTC's product offerings in this segment.

Major companies operating in the industrial margarine market report are Cargill Incorporated, The Archer-Daniels-Midland Company, Wilmar International Ltd., Bunge Limited, Unilever, Royal FrieslandCampina N.V., Conagra Brands Inc., Kerry Group, Barry Callebaut, Orkla ASA, AAK AB, Fuji Oil Co. Ltd., Puratos, Vandemoortele, Richardson International Limited, Remia C.V, Currimjee Group, MUEZ-HEST INDIA PVT.LTD., S.A. Aigremont N.V, NMGK Group, LASENOR EMUL S.L., EFKO Group, Silverson, Royale Lacroix SA, PT. BONANZA MEGAH .LTD.

North America was the largest region in the industrial margarine market in 2023. Asia Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the industrial margarine market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the industrial margarine market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The primary product categories of industrial margarine include spreadable, all-purpose, butter blend, liquid, and other specialized varieties. Spreadable margarine, for instance, is produced when finely dispersed solid crystals exist within two phases such as liquid and solid oils maintaining a solid-to-liquid ratio that melts below body temperature. These margarine types are sourced from a variety of origins, including animal and plant sources, and are available in diverse forms such as hard and soft. Their applications span across bakery items, confectionery, toppings, sauces, spreads, convenience foods, and more.

The industrial margarine market research report is one of a series of new reports that provides industrial margarine market statistics, including industrial margarine industry global market size, regional shares, competitors with an industrial margarine market share, detailed industrial margarine market segments, market trends, and opportunities, and any further data you may need to thrive in the industrial margarine industry. This industrial margarine market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The industrial margarine market consists of sales of cake margarine and block-type margarine. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).


The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.